All that glitters - may not be gold!
Governments lie; bankers lie; even auditors sometimes lie;
gold tells the truth...or does it?
Gold gains its value from its rarity! Back in the 1990's,
the total amount of gold produced since the stone-age was estimated to be around
120,000 tonnes, most of it mined after 1850. In the early days, the practise of
leaving gold with a goldsmith in exchange for a 'receipt' (which was
considerably more practical to carry around than the heavy stuff) was common.
From the 18th century on, banks took on the role of 'issuing
receipts' which represented a 'promise to pay' note -– backed by an
individuals gold which was held in the vaults of the bank. The gold standard
as it was known, ceased to function as the commodity base for many Western
nations around the 1930's, when a system of 'trust' was adopted -– with
no physical commodity backing up the 'promise to pay' note. Germany,
Indonesia, Hungary and many other nations know from harsh experience just how
susceptible to 'inflation' and manipulation this paper currency system can
Most of us would automatically associate gold with Fort Knox
in Kentucky, USA. Truth be known, most US gold is kept in the vaults of the
Federal Reserve Bank of New York - where as many as 40 other nations store their
gold as well. Be that as it may, paper and metal are no longer such a big issue,
as electronic transactions are the convenient mode of the day -– and will
develop into the future.
In 1999 most world stock markets were presenting very
negative reports. At the same time, gold prices were depressed, - Britain
responded by selling half of her gold reserve stocks - at ridiculous prices.
Other countries, mostly Asian - where gold has traditionally been held in very
high regard, continued to buy up the precious metal. Gold-to-dollar value has
fluctuated in the interim, only to settle in pretty much the same ratio today.
Gold as a 'hedge against inflation' is still being preached by some
financial analysts, in response to growing uncertainty with regard to the future
of the almighty US $.
"...There are two ways of describing this movement of the
gold price. One can say that gold has risen in terms of the dollar, but one can
equally well say that the dollar has fallen in terms of gold. The dollar is the
dominant world currency. Gold may be useful as a measure of dollar values, but
it is the dollar values themselves which are huge...
The US deficit still runs at around $400billion, far too high
for the health of the dollar. US markets have fallen sharply, but could well
fall further...What damages trust in the US damages the whole world...
When the US has a deficit of $400 billion, the rest of the
world must have a surplus of the same order and magnitude. The statistics are
tricky, but that is broadly true. Other central banks are, therefore, still
accumulating dollars, whether they want to or not. As Asia does most of the
world's saving, the Asian central banks are the big accumulators; they are
awash with dollars...
Gold is an alternative investment to the dollar for these
central banks. China and Taiwan have, in fact, been buying gold, despite the
sales by Britain. SO have private investors in Japan and India, the Japanese
worrying about their own banks, the Indians worrying about Pakistan, terrorism
and war. That is why the dollar has been falling against gold, as well as
against other currencies...
Neither stock markets, nor the prospect for earnings, nor
house prices in the US or UK, nor the US deficit suggest to me that the global
correction has been completed.
The price rise in gold is telling us the truth, not about
gold, but about the dollar. The US external deficit has to be reduced. That
means the dollar has to fall further. There is no early prospect of a return to
confidence in the US stock markets...
We may well find that the decline of the dollar is the most
important global movement of the decade" The Times, 17 June 2002.
A further article taken from the Sunday Star Times, 25
August 2002, provides a golden perspective "...In short, it's a glorious
time for the gold market -– the best since 1999, when a computer glitch
threatened to leave the world living on bartered corn and rainwater. The worst
brings out the best in the precious metal...
Gold is a direct bet against the monetary system. Gold
investors figure an ounce of gold is always worth something, even if the
government is in a shambles and currency is worthless. For two decades, the
powerful US economy kept the dollar strong and gold prices low. But lack of
confidence in the financial system and the spectre of more terror attacks are
pushing gold prices up...
In the US most gold transactions are private, so there's no
way to tell exactly how much gold has changed hands this year. Privacy is a big
reason people buy gold. Cash purchases greater than $US10,000 have to be
reported to the government, but you can buy an unlimited amount by cheque. Once
bought, gold can't be tracked by anyone, including the Internal Revenue
The US government recalled and melted its gold coins in 1933.
The dollar has been backed only by the government's good word since 1973, when
the country came off the gold standard..."
It should go without saying that any commodity which can not
be tracked or controlled by the New World Order system will not be tolerated for
much longer. Control is the name of the globalist game -– and there is no place
for individual freedoms.
I feel it important to remind our readers of the economy of
heaven -– which is based in God's wisdom "heaven and earth", and
gold "will pass away, but My Word will never pass away says the Lord", and
operates around giving and receiving. Proverbs 16:16 "How much better
is it to get wisdom than gold! And to get understanding rather to be chosen than
silver". These Godly attributes are not prone to decay, and will be with us
The more wealth you have -– the more difficult it will be
for you to acknowledge the economy of heaven...but if you do, God promises